Take a look at our February newsletter!
RESURGENCE ALERT THE IRS IS GEARING UP FOR AGGRESSIVE ENFORCEMENT
The winds of change are blowing through the realm of tax enforcement as the Internal Revenue Service (IRS) is reviving its vigor after a temporary lull induced by the global pandemic. For the past few years, the IRS has been more passive, taking a less aggressive stance toward tax- related issues. However, recent developments indicate the IRS is gearing up for a resurgence, and all taxpayers are advised to be prepared for potential storms on the horizon. One notable catalyst for this shift is the Inflation Reduction Act, which initially planned to allocate $80 billion to the IRS over the next decade. However, the final allocation amounted to $60 billion, with a substantial portion — $25 billion — allotted for tax enforcement. This injection of funds signals an imminent ramp-up in the IRS’ efforts to tackle tax compliance and collection issues. Staffing is one of the key areas expected to witness a surge in IRS activity. The IRS has gained approval to hire a significant number of new employees, a move aimed at bolstering its workforce to levels reminiscent of three decades ago. In the 1990s, the IRS boasted over 114,000 full-time employees. However, due to several factors, including hiring freezes, this number dwindled to 79,070 in 2022. The recent green light for increased hiring suggests that the IRS is gearing up for a more robust presence, with implications for audits, collections, and customer service.
activity are starting to emerge. Individuals with outstanding balances are finding the dreaded 500 Series Notices reappearing in their mailboxes, signaling a renewed focus on pursuing delinquent accounts. While this may foreshadow potential challenges for taxpayers, it also hints at improved response times for tax returns and quicker access to live IRS representatives. For taxpayers, especially those who haven’t filed their taxes yet, now is the opportune time to strategize. The shifting landscape suggests the IRS will adopt a more assertive approach in the coming months. Like plotting a flight path, tax resolution involves having a clear plan. It’s akin to choosing a destination for a smooth landing, ensuring you remain in control of your financial trajectory rather than risking an unforeseen crash. Taking proactive steps can make a significant difference in mitigating potential challenges before they escalate. While IRS Trouble Solvers stands ready to assist when needed, taxpayers can adopt a proactive stance to navigate these changing winds effectively. So, as the IRS loads up its arsenal, we urge you to be proactive and prepared. Stay ahead of the game by formulating a strategic plan for your tax matters, ensuring you have control over your financial destiny. Remember, IRS Trouble Solvers is here to assist, offering support and expertise to guide you through any possible storms. Take control now and secure a smoother financial journey in the future. -Ben Golden
“Stay ahead of the game by formulating a strategic plan for your tax matters, ensuring you have control over your financial destiny.”
The hiring spree took place during the summer and fall of last year, and signs of increased IRS
FEBRUARY 2024
1
WWW.IRSTROUBLESOLVERS.COM
S CORP, C CO
UNIQUE DIY VALENTINE’S GIFTS TO CHERISH A Craft for Your Valentine Valentine’s Day is not just about the grand gestures; the little things count, too. Nothing speaks louder than a handmade token of love in a world brimming with store-bought gifts. This year, dive into DIY and create gifts from the heart. Here are seven DIY Valentine’s Day crafts you can make from home.
Divorce and Dolla
Divorce is a challenging and emotional journey. The process can be a slippery slope if not dealt with correctly. As if the personal and financial aspects of divorce weren’t complicated enough, it also has significant implications for your taxes. Understanding the tax impact of divorce is crucial to navigating this process effectively. Let’s explore the role divorce plays in taxes to help you make informed decisions. Transitioning Your Tax Status Your filing status is the most immediate tax change after a divorce. Married couples typically file jointly, but after a divorce, you’ll likely file as either “Single” or “Head of Household.” Choosing the correct filing status can substantially impact your tax liability, making it essential to understand what each means and selecting the appropriate option. Keeping Track of Support Payments Child support is not tax-deductible for the paying spouse, and it’s not considered taxable income for the receiving spouse. However, alimony (spousal support) can have tax implications. The paying spouse can usually deduct alimony payments, while the receiving spouse must report it as taxable income. Both parties should keep accurate records of payments to ensure compliance with tax laws.
Personalized Love Jars Gather some Mason Jars and fill them with notes of appreciation, favorite memories, or future date ideas. Decorate the jars with ribbons, stickers, or paint to personalize them. Every note is a reminder of the special moments you share. Handcrafted Photo Frame Nothing says “I cherish our memories” like a handmade photo frame. Use materials like beads, seashells, and glitter to create a unique frame, then insert a favorite photo of you and your loved one.
Minimizing Capital Gains When dividing assets during divorce, it’s
essential to consider the tax consequences of different assets. For example, selling certain assets, such as stocks or real estate, may trigger capital gains taxes.
Customized Candle Holders Transform ordinary glass candle holders into something special. Use paint, glitter, or etching to add a romantic touch. Place a scented candle inside, and you’ve got a perfect mood-setter for a romantic dinner at home. Love-Themed Garden Stones For those who love gardening, creating love-themed garden stones is a great idea. Paint rocks or stepping stones with heartwarming messages or designs. These can be placed in your garden as a reminder of your affection. Homemade Bath Bombs Mix a batch of bath bombs using simple ingredients like baking soda, citric acid, and essential oils. Choose scents and colors that your partner loves. It’s a great way to add a bit of luxury to your partner’s relaxation time. Knitted or Crocheted Items If you’re skilled with knitting needles or a crochet hook, you can make a cozy scarf, hat, or even a small plush heart. These handmade items carry the warmth of your love. Heart-Shaped Baked Goods Nothing beats the smell of freshly baked goods. Whip up a batch of heart- shaped cookies or a cake decorated with your partner’s favorite colors. Crafting a Valentine’s Day gift is an intimate and enjoyable journey. It’s about embedding a piece of your heart into something tangible. This Valentine’s Day, let your love take a creative form and watch as these crafts bring a smile to your loved one’s face.
Slow Cooker Chicken Tikka Masala
2
630-832-6500 | 877-4-IRSLAW
Published by Newsletter Pro •
ORP, OR LLC
ars
Navigating the Tax Consequences of Divorce
Be sure to consult a tax professional or attorney to help you make strategic decisions about property division that minimize tax liability.
Navigating Child Custody and Tax Benefits Child custody arrangements can affect who claims the children as dependents on their tax returns. The parent with primary custody typically claims these exemptions, but couples can agree on alternate arrangements. Additionally, divorce may impact your eligibility for certain tax credits, such as the Child Tax Credit or the Earned Income Tax Credit. Protecting Your Retirement Savings Dividing retirement accounts, such as 401(k)s and IRAs, requires a qualified domestic relations order (QDRO) to avoid early withdrawal penalties and taxes. Understanding the specific rules governing these accounts during divorce is essential to protect your financial future. Ensuring Continued Health Coverage After divorce, you may lose access to your spouse’s health insurance plan. Consider the tax involved and explore alternative coverage options, such as COBRA or individual health insurance plans.
STATE OF CONFUSION WIN OF THE MONTH
Protect your financial well-being during this challenging time. Consulting with a qualified tax professional or attorney specializing in divorce can help you navigate these complexities and make informed decisions.
Don’t lose love and your money! Contact Ben Golden at IRS Trouble Solvers and let us help you navigate these complexities successfully.
CASE SNAPSHOT Client: Business Owner Type of IRS Issue: State of Illinois Income Tax Year in Question: 2014 IRS Claimed Liability: $10,840 Savings: $8,942
INGREDIENTS
•
2 lbs boneless, skinless chicken breasts, cubed
•
1 tsp ground coriander
•
1 tsp paprika
•
1 onion, diced
•
1 14-oz can diced tomatoes
•
2 cloves garlic, minced
•
1 14-oz can tomato sauce
•
1 tbsp minced ginger
•
1/2 cup plain Greek yogurt
•
1 tsp ground cumin
•
Salt and pepper, to taste
•
2 tsp garam masala
Our client came to us with a liability from the State of Illinois they incurred from an Illinois return not being filed way back in 2014. Right away, our pros got to work! Swiftly, we were able to create the Illinois return based on the federal return for that year. In the process, we discovered that the State of Illinois had not included credit for taxes paid to the State of New Jersey when they calculated the taxes due for the year in question. We corrected this omission and saved the client $8,492 in tax liability. While this was not part of our original engagement, we adjusted the engagement and handled this for our client.
DIRECTIONS
1. Place the chicken, onion, garlic, ginger, cumin, garam masala, coriander, and paprika in the slow cooker. 2. Pour in the diced tomatoes and tomato sauce, stirring to combine. 3. Cover and cook on low for 6–8 hours. 4. When the chicken is done cooking, stir in the Greek yogurt. 5. Serve over rice or with naan and enjoy!
3
WWW.IRSTROUBLESOLVERS.COM
• www.newsletterpro.com
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
100 S. York Road, Suite 214 Elmhurst, IL 60126 www.IRSTroubleSolvers.com 630-832-6500 | 877-4-IRSLAW
1 Navigating the Winds of Change From the IRS 2 Heartfelt DIY Crafts for Your Valentine! INSIDE THIS ISSUE
How Divorce Impacts Your Tax Situation
3 Slow Cooker Chicken Tikka Masala
Win of the Month 4 Helping Young People Learn Fiscal Responsibility
BEYOND BUSINESS
TEACHING TEENS WEALTH MASTERY
Fostering a Culture of Financial Accountability Educating students about saving money and sound investment strategies promotes fiscal responsibility. They learn about the long-term benefits of compound interest and regular investing. Teens can build on their financial knowledge as they see the benefits of sound financial decisions. Addressing the Wealth Gap and Adapting to Change Financial literacy is a powerful tool in bridging the wealth gap. Providing all students, no matter their background, with financial knowledge is a step toward leveling the economic playing field. As the global economy evolves, young people with personal finance skills are better prepared to adapt to changing job markets, investment trends, and saving strategies. Parents and guardians can make a considerable impact in lobbying local school districts to value and include personal finance education in high school and teaching it in their homes. Young people will be able to face life’s financial challenges confidently. As we nurture our youth for their future roles, their financial literacy is vital to fostering a society of economically stable and responsible individuals.
In today’s challenging financial world, equipping high school students with personal finance tools is essential. Arming young adults with the skills necessary to navigate the monetary challenges they’ll face is much like any traditional academic discipline. Here are a few of the tools they’ll need in their repertoire. Building a Robust Financial Foundation Helping students learn fundamental financial skills like budgeting, saving, and investing instills a deep respect for the value of money. Parents and school classes can help them understand credit, loans, and debt management to steer them away from potential financial pitfalls when they later make decisions about loans and credit cards. Practical lessons on tax filing and understanding employee benefits are invaluable, preparing them for adulthood and independence. Sharpening Decision-Making Abilities In personal finance, high schools can play a pivotal role. Students can be encouraged to read the financial news to understand market trends and make more informed financial decisions. Teaching them how to set realistic financial goals for significant life events, such as attending college or purchasing a vehicle, teaches planning and discipline, key aspects of successful financial management.
4
630-832-6500 | 877-4-IRSLAW
Published by Newsletter Pro • www.newsletterpro.com
Page 1 Page 2 Page 3 Page 4Made with FlippingBook Ebook Creator